TotalEnergies has finalised a sales and purchase agreement (SPA) with Ksi Lisims LNG to acquire two million tonnes per annum (Mtpa) of liquefied natural gas (LNG) over a 20-year period.
This agreement is contingent upon the final investment decision (FID) for the project located in Canada.
Simultaneously, TotalEnergies has purchased a 5% share in Western LNG, the developer and future operator of the Ksi Lisims LNG project. This transaction provides TotalEnergies the option to increase its stake in Western LNG or acquire a direct stake in the liquefaction plant, potentially reaching around 10% after the FID.
TotalEnergies gas, renewables and power president Stéphane Michel said: “This purchase of LNG from the future Ksi Lisims LNG plant will allow us to diversify our LNG portfolio in North America and benefit from competitive LNG supply in Western Canada to better serve our Asian customers, with whom we are developing a significant portfolio of long-term supply contracts.
“As part of our integrated strategy, we are also pleased to partner with Western LNG to support the development of this very low CO2 emission liquefaction plant project.”
The Ksi Lisims LNG project is situated on the Pacific coast of British Columbia with a planned capacity of 12Mtpa. Its location offers strategic access to Asian markets.
The project will be powered by hydroelectricity, aiming to be one of the lowest CO2-emitting LNG facilities globally.
Located at Wil Milit, near Gingolx on Nisga’a Nation treaty land, the site comprises previously logged, undeveloped land close to existing shipping lanes.
The project targets net-zero readiness by 2030 through technological emissions reduction, local nature-based offsets, and continuous technological improvements.
The Ksi Lisims LNG project is expected to have lower carbon emissions, benefiting from renewable hydropower and a shorter shipping distance to Asia compared to other LNG sources.
The emissions intensity is projected at 0.02 tonnes of CO2e per tonne of LNG upon connection to British Columbia’s hydropower. Temporary power barges will be utilised if delays occur, keeping emissions below the province’s benchmark of 0.156 tonnes of CO2e per tonne.
Environmental assessments, Indigenous consultations, and initial engineering work are underway. With necessary regulatory and investment approvals, construction may commence in 2025, aiming for operational status by 2029.
In January 2024, Ksi Lisims LNG, a collaboration between the Nisga’a Nation, Rockies LNG, and Western LNG, announced an SPA with Shell Eastern Trading.
Under this agreement, Shell will purchase 2Mtpa of LNG from the project, marking Ksi Lisims LNG’s inaugural LNG offtake deal.
